Emotions drive the trends of the crypto market. Plenty of people get voracious when the marketplace is bullish. In the same way, they resort to terror selling when they notice the worth of crypto assets (mainly Bitcoin) demur sharply. The aim behind the crypto greed and fear index is to aid traders in evaluating the marketplace and making wise decisions by placing the general market sentiments into perception. The Greed and Fear index of poloneix was invented by CNNMoney, enabling investors and traders to evaluate stock and share markets reactions at a glance. As of 2021, the Crypto Greed and Fear index has used Bitcoin-related information. The motive behind this is bitcoin’s significant association with the crypto industry in terms of sentiment and price.
How is the Crypto Greed and Fear index evaluated?
The Crypto Greed and Fear index can easily be calculated on a scale of 0-to-100, while
- 75-100 = Extreme Greed
- 50-74 = Greed
- 24-49 = Fear
- 0-24 = Extreme Fear
Extreme Fear is a symbol that investors are exceedingly fear the cost of their assets demur sharply. But, the intense Fear between investors could also imply that there is a purchasing opportunity. Similarly, the marketplace is due for a connection when there is too much greed between investors.
Conclusion
The crypto greed and fear index is a simple way to evaluate the existing market trends, consideration of different market sentiment indicators and metrics. But, envisaging the change from a bear to a bull marketplace (or vice versa) depending on the crypto greed and Fear index alone is unreliable and complicated. Hence, these indicators and metrics not expected to aid you in making permanent investment decisions. Doing your study via fundamental and technical analysis of the marketplace information is vital before investing money into cryptocurrencies.
